$13.3 Million Forfeited In Online Gambling Case

18 August 2010

In a story released through the Dow Jones Newswires, the defendants in the online gambling money laundering case have agreed to forfeit $13.3 million, The money was seized by the U.S. Government from two online gaming payment processors, Allied Wallet Inc. and Allied Systems Inc. both owned by  Ahmad Khawaja.

The FBI says this is just a small portion of what was run through the business for the first half of 2009. Some of the funds were allegedly linked back to Pokerstars and a few other off shore gambling sites. U.S. prosecutors argued that some of the money was traceable to wire transfers coming from outside and contended that this was “by individuals and entities who knew that the funds involved represented the proceeds of the illegal transmission of gambling information and the operation of an illegal gambling business.”

Since the UIGEA is very vague in defining what exactly is illegal gambling and only specifically spells out online sports betting in the law, sites that are just online poker sites contend they are doing nothing wrong.  Interestingly enough the Government may agree as the DOJ typically has been going after the payment processors and not the sites themselves.

As far as Pokerstars is concerned, a spokesman had this to say,

“PokerStars does not condone efforts by processors to conceal the nature or purpose of funds used to play online poker. PokerStars has taken steps to ensure that processors properly disclose the nature of their business to their relevant financial institutions.”

This is not the first case this year involving money laundering charges and online gambling.  Back in April Daniel Tzvetoff faced off against the DOJ.  Hopefully though the future of online gambling in America will be getting brighter as HR 2267 keeps building to a full House of Representatives vote.

Related News

  • 14 May 2010

    Canadian Man Pleads Guilty in U.S. Online Gambling Charge

    Douglas Rennick, a Canadian man, has pleaded guilty to a count of processing offshore bets of U.S. citizens. Originally Rennick was looking at a charge of conspiracy and bank fraud. He had allegedly laundered $350 million dollars for overseas internet gambling companies. Rennick was indicted in August and on Tuesday entered a guilty plea to the one charge in New York Federal court. Part of the plea was forfeiting $17.1 million and a possible prison term of 6-12 months.

    Read full article
  • 02 June 2010

    France to Award 30 Licenses for Online Gambling

    Today the government of France approved a new online gambling bill. The bill passed the French parliament by a narrow 299-233 vote. The French will grant only 30 licenses to operate online casinos and poker rooms within its borders. Though it is now official and France says that licenses will be granted in time for the 2010 World Cup, not everyone is excited about the French market.

    Read full article
  • 09 June 2010

    France Issues 11 Licenses For Online Gambling

    France acknowledged that 11 companies have been granted license and have been registered to conduct online sports and horse race betting as well as online poker within France. According to Arjel president Jean-Francois Vilotte, the regulator of gaming in France, “There were 35 requests for licenses and we have retained 17 at this stage. None have been formally rejected.

    Read full article